PMOPG/E/2023/0267975
21/12/2023
A petition was filed (no. DOEXP/E/2023/0002663) concerning preparing estimates for civil/electrical works by the engineering department of the Central Government bodies located across India. Invariably Delhi Schedule of Rates (DSR) is taken as the basis to prepare the estimate to form the basis of taking budgetary approval and to float the tender. In many cases the DSR is much higher as compared to schedule of rates prepared by the concerned state PWD.
The petition was replied by CPWD defending the existing practice (attached). However, the issue has huge ramifications and may be examined by DOE. The current practice is resulting in preparing estimates at much higher value and mentally preparing everyone in the system to accept higher quotes. The higher estimates also convey the willingness of organization to pay higher sums to contractor. The state PWD rates are more relevant as the same have been drawn keeping in view the local conditions more closely connected with the ground reality. The DSR are prepared based on conditions prevailing in Delhi. Why should DSR be the basis for preparing estimate in Chhattisgarh, Orissa, Andhra or Meghalaya? Preparing rates on higher values is a patent violation of principle of propriety.
Accordingly, the guidelines about which schedule rates to be used by agencies located outside Delhi must be framed by DOE as the issue directly relates to expenditure.
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